For companies to succeed, they need a strong workforce of employees. Employees are the ones that actually carry out a business’ daily operations, and as such no business can stay afloat without the right people. It should come as no surprise then that companies invest a lot in their workforce. For most businesses, labor represents [...]
While typical financial statements like the balance sheet, income statement, and statement of cash flows provide information about performance that has already happened, many companies take performance monitoring a step further by creating “pro forma” financials. Leveraging historical data and applying assumptions, pro forma financials provide insight into the future outlook for the business, and [...]
The process of filing every year is met with dread and resignation from businesses and individuals alike. The U.S. tax code is extremely large and complex. What’s worse, even a small mistake could lead to an audit or fine from the IRS. For context, tax statutes passed by Congress into law total about 2,652 pages [...]
In 1993, Quaker Oats bought Snapple for $1.7 billion... about $1 billion higher than what most thought the company was “worth” on Wall Street. Following its previous success with Gatorade, Quaker must have thought it could replicate the formula, leveraging its expertise with supermarkets and retailers to generate great rewards for investors. However, its efforts [...]
Ames Department Stores serves as a great reminder to investors of the dangers of flawed fair value accounting. Ames was a discount retailer in the US that filed for bankruptcy in 1990. It closed well over 300 of its stores and fired 26,000 employees in an effort to pay off its creditors.
